Curve DAO Token (CRV): Value and Benefits, Perspectives and Forecasts

What is CRV? Chronicle of appearance, team

The Curve DAO Token (CRV) is the largest decentralized finance (DeFi) project. At the end of 2019, namely in November, the concept of the project itself was first presented by Mikhail Egorov, a Russian, who was a physicist by profession. At first, the name of this platform was StableSwap, later renamed to Curve Finance. It was possible to capture a niche almost immediately, thanks to the high profitability of the project.

Egorov is far from new to cryptocurrency, his acquaintance with virtual assets took place at the peak of the popularity of the crypto, in 2013. An interesting fact is that he was even engaged in mining litecoins. And already in 2016, he founded the NuCypher company, which specialised in data encryption. As a result of the ICO, the platform was able to raise over $30 million, and sales to individuals added another $20 million to the total profit. But, alas, the coin with the ticker NU could not overcome the threshold of getting into the listings of the world's cryptocurrency exchanges.

After such a failure, Egorov did not stop and became interested in DeFi protocols. During a long selection of reliable decentralized exchanges, Mikhail got acquainted with Uniswap, but its functionality failed to impress, so he thought about developing a completely different platform. White paper (translated as a white book) StableSwap was introduced to the world in 2019. And already in January 2020, Egorov set up the coding and protocol for the entire project.

In May 2020, the company announced the release of management tokens. And, it would seem, the settlement of legal issues on the transition of the project to an autonomous decentralized organization could last more than one year, Mikhail Egorov coped with this in a couple of months. And already in August 2020, the CRV cryptocurrency was included in the listings of large exchanges — Binance and Poloniex. It would seem that a team of such a large and noisy project as StableSwap should have several tens or even hundreds of employees, but this is not the case. The company consists of only 5 people, including the founder of the project. The organization is based in Europe, Switzerland. Two people in the company are engaged in the development of the project — this is Mikhail himself and 1 more developer, the rest of the team is working hard on marketing and PR.

Curve DAO Features

Unlike other automated market makers (AMMs), Curve supports stablecoins such as USDT, USDC or PAX that are pegged to the US dollar or wBTC that track the value of bitcoin. Due to these features of coins, the tendency of market volatility is significantly lower, in addition, cases of non-permanent losses are reduced. Token holders have the right to manage decisions that relate to the platform, while when it comes to solving the issue of how to reward or new assets, users who own tokens for the longest time play a big role.

The main characteristics and differences of CRV:

• A large range for earning, because the platform is aimed at a significant amount of virtual assets.
• The system allows clients to provide liquidity using one or more than 1 token in the pool. Curve will automatically split the token with the desired ratio in the pool.
• With CRV, you get a yield aggregator, with which you can receive a commission from a financial transaction and an interest rate on "loans".
• The simple structure of the project, unobtrusive design and protocol are immediately visible to everyone who just enters the platform for the first time. The developers initially planned everything so that the Curve DAO ecosystem could work with the most minimal requirements. And the launch of the system itself is possible on any device, the main thing is that there is access to the Internet.
• Reduced slippage, the problems that many faced in cooperation with the first decentralized exchanges. The difference between the transaction price and the actual price that was given for the asset itself is called slippage. Here, Curve DAO helps to solve this issue, because the platform is focused on assets attached to fiat money.
• The minimum commissions are caused by the simplicity of the smart contracts mechanism, allowing you to sell CRV at fairly favourable rates. The completion of the exchange operation takes only 1 transaction.
• The project allows the use of stablecoins, so anyone can easily trade DAI, USD Coin, Tether, TrueUSD, Binance USD, Pax Dollar and sUSD.

Technological aspects of CRV cryptocurrency

Curve DAO was created according to the ERC-20 algorithm. The project works on the Proof-of-Stake (PoS) consensus mechanism, which made it possible to stake. The main task of the token is to stimulate liquidity providers. The initial supply volume was 1.3 billion CRV tokens. But once these tokens are distributed among liquidity providers, the figure should increase to 3.03 billion. The cost of the token is calculated not based on the order book, but on the basis of a constant product (x*y=const). This is still not a new method, because it is also used by Uniswap and SushiSwap.

Capitalization of Curve DAO Token (as of this writing): $1,184,704,249

Emission: the maximum number of tokens is 3.03 billion; the release of the final token is scheduled for August 2026.

The entire amount of CRV tokens, like any other cryptocurrency, is always distributed among groups of people. As for Curve DAO Token, the distribution looks like this:

• 62% — are providers of liquidity;
• 30% — holders of shares, the holding period of which is 2-4 years;
• 5% — community stock;
• 3% — platform team.

How to buy and where to store Curve DAO Token?

At the time of writing, the daily trading volume of the crypto coin is $324,349,053, and the Curve DAO Token rate reaches $2.56 in the last 24 hours.

It is possible to buy Curve DAO Token both for fiat money and for other cryptocurrencies that can be purchased on special decentralized exchanges, or using the Coin24.io service. It will be very easy to make an exchange, as our crypto exchanger offers the lowest commissions, the best rate and many available pairs. But, of course, the choice is yours.

You have already seen that it is not so difficult to buy a CRV token, but no less important is how to keep it safe from scammers. It is best to keep coins on specialized hardware crypto wallets. Trezor or Ledger Nano X are very popular.  If you are not interested in buying such wallets, then you can use the mobile application for such purposes, or the desktop version of this wallet. The main nuance when choosing is the support of the ERC-20 standard by the wallet. It is also important to remember that no matter how secure an online wallet is, there is still some chance that hackers can hack them. Paper and hardware media will be more secure as they exist offline.

Forecasts and prospects for the development of the token

For quite a short time, the little-known Curve Finance protocol, as we can see, has become a very great and prestigious protocol in the DeFi system on Ethereum. Despite the duplication of the contract at the start, which demonstrated the weak point of the source code, the token was added to the largest sites and provokes great demand from users. By the way, not only coin holders believe in the token, many analysts make very positive predictions about the future value of the Curve DAO Token rate growth. One of the most popular analysts Pizzino claims that in the coming weeks CRV will please owners with rapid growth, leaving the so-called "accumulation zone". We can say that the trader Credible has the same opinion, because on his Twitter he announced a personal forecast regarding the price of Curve, pointing to the number of $40 for 1 token. Perhaps the big crypto holders are listening to the opinions of great analysts, because in early April 2022, Curve DAO Token managed to become the best-selling coin among the 100 largest Ethereum whales (holders) in 24 hours. CRV got into the lists of the most used smart contracts of ETH-whales.

Therefore, it is up to you to decide whether to invest your assets in this token or not.